Ryan Specialty completes acquisition of Velocity Risk Underwriters

CHICAGO - Ryan Specialty (NYSE: RYAN), an international specialty insurance firm with a market capitalization of $8.48 billion and impressive 56.86% return over the past year, has finalized its acquisition of Velocity Risk Underwriters, LLC, a managing general underwriter specializing in first-party insurance for catastrophe-exposed properties. The Nashville-based Velocity will now operate within the Ryan Specialty Underwriting Managers division.

The transaction, which was first announced on January 7, 2025, was concluded today, marking a strategic expansion for Ryan Specialty. The terms of the acquisition, which was facilitated by funds managed by Oaktree Capital Management, L.P., have not been disclosed. According to InvestingPro data, Ryan Specialty has maintained strong financial health with a "GOOD" overall rating, suggesting solid positioning for strategic growth initiatives.

Ryan Specialty, founded in 2010, acts as both a wholesale broker and managing underwriter, offering specialty products and solutions to insurance brokers, agents, and carriers. The company’s services include distribution, underwriting, product development, administration, and risk management with delegated authority from insurance carriers.

The integration of Velocity into Ryan Specialty’s Underwriting Managers division is expected to enhance the firm’s capabilities in providing insurance coverage for properties at risk of natural disasters. This move aligns with Ryan Specialty’s mission to deliver innovative specialty insurance solutions across the industry.

The acquisition is part of Ryan Specialty’s broader strategy to expand its service offerings and market presence in the specialty insurance sector. Velocity’s expertise and established position in underwriting catastrophe-exposed property risks are anticipated to complement Ryan Specialty’s portfolio and expertise.

This announcement is based on a press release statement from Ryan Specialty. The company has not provided further details on the financial impact of the acquisition or its long-term strategy for integrating Velocity into its operations. With revenue growth of 20.14% in the last twelve months and trading near its InvestingPro Fair Value, investors seeking deeper insights can access comprehensive analysis and additional ProTips through the Pro Research Report, available exclusively to InvestingPro subscribers.

In other recent news, Ryan Specialty Group has made significant strides in recent developments. The insurance organization has entered into a definitive agreement to acquire Velocity Risk Underwriters. This acquisition, expected to close early 2025, includes Velocity’s managing general underwriter operations and its wholly-owned E&S carrier.

Ryan Specialty has also reported a substantial increase in third-quarter revenue and earnings, with total revenue rising by 20.5% to $605 million and adjusted earnings increasing by 29.4% to $190 million. In addition, the company has issued an additional $600 million in 5.875% Senior Secured Notes due 2032, intending to fund potential future acquisitions and investments.

Morgan Stanley (NYSE:MS) has initiated coverage on Ryan Specialty with an Overweight rating, indicating a positive outlook based on the ongoing shift towards the Excess & Surplus markets. The company is also set to maintain organic revenue growth guidance of 13.0% to 14.0% for 2024. These developments underscore Ryan Specialty’s strategic initiatives and commitment to growth in the specialty insurance sector.

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